and central air conditioners. This
will apply to items installed in a
primary home in 2006 and 2007.
The top credit is $500, with no more
than $200 attributable to windows.
Homeowners will also be able to
take a 30% of the cost of solar
systems to heat air or water, but not
pools or hot tubs. This credit will be
available for second homes as well
as principal residences. The credit
is capped at $2,000 each for home
furnaces and water heaters and
applies only for 2006 and 2007.
An uninsured loss is not always
deductible for tax purposes. The
deck on taxpayer’s residence
collapsed because the wood had
rotted and their insurer denied
coverage because their policy didn’t
cover losses from rot. And the Tax
Court denied their casualty loss
deduction because the damage was
caused by “progressive
deterioration.”
If you are considering making a
large charitable contribution this
year, the best charitable gifts are of
appreciated long-term capital gains
property, such as stock or
collectibles. You get a deduction for
their full value while avoiding paying
capital gains tax on their
appreciation. The most tax can be
saved on collectibles, because the
long-term gains rate on them is
28% rather than the 15% top rate
on stock sales.
Our website, www.completaxnapa.
com, is finally up and running
thanks to the diligent effort and
persistence of Alisha, our
administrative assistant. We will be
making changes as we go along
and would welcome any
suggestions or comments.
will apply to items installed in a
primary home in 2006 and 2007.
The top credit is $500, with no more
than $200 attributable to windows.
Homeowners will also be able to
take a 30% of the cost of solar
systems to heat air or water, but not
pools or hot tubs. This credit will be
available for second homes as well
as principal residences. The credit
is capped at $2,000 each for home
furnaces and water heaters and
applies only for 2006 and 2007.
An uninsured loss is not always
deductible for tax purposes. The
deck on taxpayer’s residence
collapsed because the wood had
rotted and their insurer denied
coverage because their policy didn’t
cover losses from rot. And the Tax
Court denied their casualty loss
deduction because the damage was
caused by “progressive
deterioration.”
If you are considering making a
large charitable contribution this
year, the best charitable gifts are of
appreciated long-term capital gains
property, such as stock or
collectibles. You get a deduction for
their full value while avoiding paying
capital gains tax on their
appreciation. The most tax can be
saved on collectibles, because the
long-term gains rate on them is
28% rather than the 15% top rate
on stock sales.
Our website, www.completaxnapa.
com, is finally up and running
thanks to the diligent effort and
persistence of Alisha, our
administrative assistant. We will be
making changes as we go along
and would welcome any
suggestions or comments.
| september 2005 NEWSLETTER |
| Completax Planning, Inc. |
| 1100 Lincoln Avenue Suite 104 Napa, CA 94558 707-257-3995 800-244-3995 707-257-1306 fax |
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HAPPY ANNIVERSARY COMPLETAX
September 8, 2005 marks Completax
Planning Inc’s. 25th year in business.
We couldn’t have done it without you.
Thank you for honoring us with your
business, trust and referrals.
With all the re-financing going on we
thought we would re-iterate some of the
rules. First, there is a mortgage cap of
$1.1 million for tax purposes, meaning
interest on a loan in excess of $1.1
million is not tax deductible. Second,
you can only deduct interest on the first
$100,000 of a home equity loan. The
interest on the balance above
$100,000 may not be deductible,
depending on the amount of the first
mortgage.
Next year individuals can receive a six-
month automatic filing extension and
thus will not have to file for an
additional extension in August. The
Franchise Tax Board which has had a
six-month automatic extension available
for several years. These extensions do
not extend the payment of tax and any
tax due may be subject to interest and
possible underpayment penalties.
In the energy bill just signed by
President Bush, buyers of hybrid cars
will get a tax credit. Currently,
purchasers receive a $2,000 taxable
income deduction, but for 2006 the
buyers will receive a tax credit which
could potentially save a lot more
money. The credit has some
limitations, varies for different types of
vehicles and will phase out as auto
manufacturers sell their 60,000th hybrid
vehicle. (Congress couldn’t make it
simple!)
There is also a small credit for energy-
saving home improvements…10% of
the cost of skylights, outside doors,
windows, pigmented roofs and high-
efficiency furnaces, water heaters
September 8, 2005 marks Completax
Planning Inc’s. 25th year in business.
We couldn’t have done it without you.
Thank you for honoring us with your
business, trust and referrals.
With all the re-financing going on we
thought we would re-iterate some of the
rules. First, there is a mortgage cap of
$1.1 million for tax purposes, meaning
interest on a loan in excess of $1.1
million is not tax deductible. Second,
you can only deduct interest on the first
$100,000 of a home equity loan. The
interest on the balance above
$100,000 may not be deductible,
depending on the amount of the first
mortgage.
Next year individuals can receive a six-
month automatic filing extension and
thus will not have to file for an
additional extension in August. The
Franchise Tax Board which has had a
six-month automatic extension available
for several years. These extensions do
not extend the payment of tax and any
tax due may be subject to interest and
possible underpayment penalties.
In the energy bill just signed by
President Bush, buyers of hybrid cars
will get a tax credit. Currently,
purchasers receive a $2,000 taxable
income deduction, but for 2006 the
buyers will receive a tax credit which
could potentially save a lot more
money. The credit has some
limitations, varies for different types of
vehicles and will phase out as auto
manufacturers sell their 60,000th hybrid
vehicle. (Congress couldn’t make it
simple!)
There is also a small credit for energy-
saving home improvements…10% of
the cost of skylights, outside doors,
windows, pigmented roofs and high-
efficiency furnaces, water heaters